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Category: Investing

Everyone you know seems to start participating in real property investment. Their income prospects look bright, and you are almost tempted to get into real estate investment yourself. It’s just that you need to be reassured.

It is a good thing to take your time in deciding whether or not to enter a real property investment, especially if you are targeting commercial property investment. Investing in commercial property often requires a greater investment cost and a higher risk. The secret to the success of a successful property investment business is knowing the property you want to buy, and ensuring that the risk is low, and the prospects for income are high. You can do this if you know how or where to look for commercial property that you can invest in, and how to assess their worthiness.

The first step is to find and find commercial property that is good to buy. If you complain about not finding a property that promises after driving around your block or neighborhood, you lose the point. The meaning of “search” means you have to get out of your way to find commercial property that you can invest. The internet is the best place to start your search. This is more convenient and cheaper too, remembering that allows you to go to various places while on your sofa or desk. There are several websites out there that regularly post investment properties that are available from various states, both urban and rural. There are also newspaper classifieds, but experts say the internet is a better search tool.

If you find nothing promising to start your commercial property investment business, you can also drive out of your neighborhood and around your closest location to sniff property. Especially pay attention to every abandoned property that you skip, because this most often turns out to be the best purchase. If you find any property with the potential for commercial use, you might want to set an initial meeting with the owner to see if he is open to selling it. There are also those who reject the urge to ask for advice from a real estate agent. Expert investors do this a lot, especially those who are recognized as not experts in real estate matters. A real estate can do many great things for you, such as helping you look for promising properties, or comparing your prospective property investment.

Once you find what looks like a good investment, it’s time to assess and see if it’s really a smart move to buy property. For this purpose, you need to look at your expectations for commercial property, view it as an investment rather than a piece of property that you want to have forever. How many returns do you expect to produce? This is called a quantitative approach. Then follow up with a qualitative approach, this time assessing whether your goals are realistic or not, given the amount of time, commitment, and money needed to invest. If this seems to be something that is appropriate for you, then you are ready to sign the dashed line.

Wherever your interests are in life, it may be safe to say that every time you do a new project or goal, you deserve to do it right so that you can experience the highest possible level of success. Part of making sure that you will succeed with the task is to make sure that you are ready before you start, and this means making a solid plan before you draw the first line, or cutting the first piece of cloth. The same principle applies in the world of investment, and if you will succeed, you must choose a stock market strategy that will minimize your risk.

The need for stock market strategies often provides new investors with a comfort margin, because they know that there are plans available to keep them from losing money if at all possible. The only problem is that there are hundreds of different strategies circling in the investment world, and choosing the right one for your budget and level of experience can be just as difficult as choosing which stock is right for your first purchase. Between short and long term investments, and fundamental and technical analysis, how do you know which will allow you to get the most out of your money?

Although it may seem too simple, one of the best stock market strategies you can do is solid education. Even though new investors have never lacked motivation and determination, they usually lack the experience needed to find traps and risks before it’s too late. Take the time to study stock charts, look for patterns and trends, and make predictions on paper before you test your knowledge on the real market.

Another smartest stock market strategy is getting help before you start investing. Before independent online investment becomes very popular, people seek help from brokers and traders with professional experience, and this is still an option if your budget will allow it. Instead of sitting back and letting these professionals make all the decisions, however, make a point of remaining active members of your investment team. Ask questions and keep looking for opportunities that your broker might miss. Combining your passion for success and their expertise, you will be far more likely to achieve your goals in a time frame that suits your financial needs.

Over the past decade, many people who were actively involved in real estate had made good returns. This is not surprising as properties values tend to be on the rise over a period of time. They are not as volatile as other investment such as the stock market for instance. However, the question now is… Is it still a good time to invest in real estate now since the mortgage or housing market was hit by a crisis?

Not many people believe it but the answer to the above question is yes. Well, because the price is low now hence it is a good time to buy. The most basic principle of any investment is to buy LOW and sell HIGH. But, unfortunately most people don’t apply this principle.

It is the same if you were to invest in a portfolio of stocks for your retirement. In order to get the best return, you want to make sure that you are buying stock at its intrinsic value. Unfortunately, 95% of investors don’t follow this principle, they are after those hot and high-priced stocks instead. This is a mistake because they are overpriced. That’s why so many people lose money when there is a financial crash because those overpriced stocks will also be crashing down (back to their intrinsic values).

So, the same principle applies when it comes to investing in a real estate. Buy when the price is low to get good return in the future. Of course, you must be willing to hold it for 3-5 years till the dust has settled and your investment will rise in time.

But there are several strategies you can use for property investment.

Flipping property is one strategy in which you buy a property by paying a holding deposit and then try to sell it before having to pay the balance. For example, let’s say you find an off-plan property up for sale from developer for $185,000; the completed property will be selling for $200,000.

You pay a 20% deposit (which is $37,000), with the final balance of 80% ($148,000) due in 18 months when the property is completed. Let’s assume that you have picked a good location and the property goes up by 20% over the next 18 months. So the property is now worth $240,000.

Let’s say you manage to sell the property for $220,000. You pay off the 80% balance you owe and you are left with $72,000. This gives you a NET profit of $35,000 in 18 months and remember you only had to commit $37,000 initially. This is a return on investment of 94.5% over 18 months. Where can you find an investment that can give you more than 90% return in 18 months?

Another property investment strategy is Foreclosures. Many foreclosure prices are significantly lower than the market prices. So again, you are applying the principle of buying LOW and selling HIGH. However, this strategy often requires you to have a substantial cash outlay. You must also perform proper due diligence when researching foreclosures. Are there any other additional liens against the property other than that of the foreclosed note?